Petrobras drastically cuts investment by 37% in next five years

The investment portfolio will give priority to petroleum exploration and production projects in Brazil, with the emphasis on the pre-salt

Output target is 3.7m barrels per day (bpd) by 2020, when about 50% of output is expected to come from the pre-salt. Production hit 2.7 million bpd in May

State-controlled oil giant Petrobras, which is mired in a corruption scandal that has rocked Brazil, said Monday it was cutting investment by 37% during the 2015-2019 period. Investment during the period will now total $130.3 billion, down from the $220.6 billion originally planned, Petrobras said in a filing with the Sao Paulo Stock Exchange.

The investment portfolio will give priority to petroleum exploration and production projects in Brazil, with the emphasis on the pre-salt, Petrobras said, referring to the deepwater fields discovered nearly a decade ago in the Atlantic.

The exploration and production business will receive investment totaling $108.6 billion, with the rest of the funds going into the company's other divisions, Petrobras said.

In the other business units, investment will be basically destined for maintaining operations and projects related to petroleum and natural gas distribution the company said.

The production target is 3.7 million barrels per day (bpd) by 2020, when about 50% of output is expected to come from the pre-salt, Petrobras said. Production hit 2.7 million bpd in May, of which 2.1 million bpd were produced domestically, Petrobras said.

Several former senior Petrobras executives and more than a score of executives of leading construction companies that had contracts with Petrobras have been arrested as part of an investigation into corrupt practices at the energy company.

The former treasurer of the governing Workers' Party, Joao Vaccari, also has been arrested and charged with corruption, criminal conspiracy and money laundering.

Most of the 50 or so politicians caught up in the case are from parties supporting President Dilma Rousseff's administration. Money from the scheme was often delivered to political parties in the form of legal and duly registered campaign donations, according to investigators.

Top Comments

A question. If, as they say, corruption happened through legal donating money to the campaigns of the PT, why the PSDB (opposition) received even greater values than the PT?

It seems that the right parties bought some members of the Federal Justice and federal prosecutors.

One thing I know, the time is coming all be clear, because until now there has been only selective leaks parts of the process that runs on secrecy. And always harmful information to the PT.

The bad servers of the Republic that demonstrate clear political interest in the judicial process should also be investigated, although I think it's already happening.

Jun 30th, 2015 - 10:56 am 0

ChrisR

They will be lucky id the drop in future development is ONLY 37% because nobody with a brain is going to put ANY money in this company OR the country.

So, brainless Brasso, it's all waiting for your millions of US dollars, not measly Reals. Oh! You don't have ANY money, do you?

Jun 30th, 2015 - 11:19 am 0

yankeeboy

As the case rolls out in the USA they'll have to re-nationalize PBR to save it or it will go bankrupt.
I bet they'll also find links to Lula and Dilma
Who knows they may end up rotting in a USA prison where they belong.